|
Motorola eyes Iridium save
|
 |
October 13, 1999: 8:04 a.m. ET
CEO says 'talks ongoing', remains hopeful despite $1B write-off
By Staff Writer Rod Cant
|
GENEVA (CNNfn) - Motorola boss Chris Galvin is hoping for a revival in the fortunes of collapsed satellite communications provider Iridium, despite having to write off almost $1 billion on the company.
In an interview Wednesday with CNN at the Telecom 99 trade fair in Geneva, chairman and chief executive officer Galvin claimed, "we're not giving up hope, we think the proposition is essentially there."
Iridium filed for bankruptcy protection in August after its failure to sign up enough subscribers to its global phone service led to a $1.5 billion debt default. Motorola is a major shareholder in the venture.
Analysts have suggested that Motorola may try saving Iridium by combining it with fellow struggling satellite company ICO Global Communications, and entrepreneur Craig McCaw's as yet unlaunched Teledesic service. In his interview Galvin didn't rule out such a deal, but he didn't confirm one either.
"In the telecom market lots of players are changing, and joining hands in a variety of ways," he said, adding, "although we can't speculate at this time."
He confirmed that discussions aimed at saving Iridium were going on "as we speak".
"We are in the process of working with Iridium and other partners seeking to find a viable financial restructuring of the business."
Telecom 99
Galvin claimed Motorola (MOT) earnings unveiled after the New York market closed Tuesday showed "significant progress in all the things we promised," and he dismissed fears that the Iridium issue, which necessitated a one-time charge of $994 million in the third quarter, would continue to overshadow the company. In its earnings release Motorola warned:
"Further understanding of the impact on Motorola of the Iridium restructuring may become clearer in the fourth quarter, and may necessitate an additional special charge at that time."
Motorola shares closed down 1-11/16 at 94-15/16 Tuesday.
Galvin's full interview with CNN will air later Wednesday on World Business Tonight.
|
|
|
|
|
|
Motorola
Iridium
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
